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Question 206

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Use the following to answer question: Use the following to answer question: -(Table: Demand for Crude Oil) Use Table: Demand for Crude Oil.Assume that the crude oil industry is a duopoly and the marginal and fixed costs of producing crude oil equal zero.Suppose that the two firms are maximizing industry profit and splitting the profit evenly.If both firms engage in noncooperative behavior,the industry output will be _____ barrels,and the price of crude oil will be _____. A) 0;$160 B) 80;$80 C) 100;$60 D) 160;$0
-(Table: Demand for Crude Oil) Use Table: Demand for Crude Oil.Assume that the crude oil industry is a duopoly and the marginal and fixed costs of producing crude oil equal zero.Suppose that the two firms are maximizing industry profit and splitting the profit evenly.If both firms engage in noncooperative behavior,the industry output will be _____ barrels,and the price of crude oil will be _____.


A) 0;$160
B) 80;$80
C) 100;$60
D) 160;$0

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